In the future Spanish banks will need to put aside 20%of the value of the properties they have repossessed more than a year ago.This is the decision of the Bank of Spain.This is an increase on the 10% which was required previously.It will mean that the value of bank assets will be diminished and so they will be less inclined to repossess and more inclined to seek re-payments.It will however reduce the number of sales which are actually taking place at the moment.
Police in the Province of Barcelona have been carrying out a number of arrests .The arrests have been made in connection with the corruption case “Operacion Pretoria” The Mayor of Santa Coloma has been arrested as have the Urban Planning Councillor,the former secretary of the Presidency ,the Minister of the Economy with Pujol,the director of the construction company Proinosa and President of the property group Espais.Also a former member of the Regional Parliament from the socialist party.So far the police have caried out thirteen searches.
The budget deficit of the State of Spain is now 62,780 million euros.At this time last year it was 13,507 million euros .It is now 5.96% of GDP.Tax income has fallen by 16.2% while expenditure has risen by 22.6%.Income Tax receipts have fallen by 10.9% ,Business Tax by 30.4% and VAT income by 33.9%.Many are now saying that he state of the economy is out of control.
